Scott Morrison will unveil the first federal drought fund of its kind in Canberra on Friday.
The $5 billion Future Drought Fund aims to provide relief to farmers, help them recover from the so-called ‘green drought’ on the east coast, and assist with their long-term resilience.
“There are people in trouble. They need help. It’s the Commonwealth Government’s responsibility to look after the people,” Prime Minister Morrison told SBS News in an exclusive interview.
The drought has been his number one priority since assuming the leadership in August, Mr Morrison said.
"There will always be droughts in Australia and what has struck me over that period of time is we needed to build resilience for the future.”
The government will tell farmers the drought conditions are not expected to lift until autumn next year.
The Fund will include an immediate $3.9 billion dollar funding injection, which will grow over the next decade.
"It’ll build up to $5 billion and each year, we’ll be able to draw down around $100 million from the earnings of that fund,” Mr Morrison said.
"I think that gives them the confidence to plan for themselves and make their own investments.”
It’s understood no specific projects have been approved under the Fund yet, but could include new infrastructure and long-term research.
The government is expected to canvass ways to spend the money and ways of approving it at Friday's summit.
As well as farmers, it will be open to non-government organisations and whole communities.
Parts of Western Australia, South Australia, New South Wales and Victoria have all experienced below average rainfall this year.
About 98 per cent of New South Wales alone is in some stage of drought, with 10 per cent in ‘intense drought’, according to the state government.
The Coalition has also appointed former Nationals leader Barnaby Joyce as its drought envoy.
Major General Stephen Day has also been selected as the country’s Drought Coordinator.
